Future Enterprises announced on Thursday that it has agreed to sell a 25% stake in its general insurance joint venture, Future Generali India Insurance Co Ltd, to its partner in the entity Generali Participations Netherlands NV for a cash consideration of ₹1252.96 crore, plus additional consideration related to the closing date of the transaction.
Generali has also acquired an option to buy out the company’s remaining stake in the general insurance business, either directly or through an agent, at an agreed valuation subject to applicable regulatory approvals, Future Enterprises said in a statement. the press release.
The transaction is subject to applicable regulatory approvals and other customary conditions.
Generali had previously received approval from India’s Competition Commission to buy a 16% stake held by Industrial Investment Trust Limited in Future Generali India Life Insurance. It has also committed to invest up to ₹330 crore in tranches in the life insurance business to fund its growth plans.
As part of these transactions, Generali will acquire majority ownership and control in the two insurance joint ventures.
Future Enterprises said it has received offers from potential buyers for its remaining 24.91% stake in Future Generali India Insurance Co Ltd.
It is also considering options to sell its 33.3% stake in the life insurance joint venture and expects to finalize the exit of its stake in the insurance joint ventures within a specified period to meet its commitment under the ad hoc restructuring plan implemented on 6 August. , 2020 circular issued by the Reserve Bank of India regarding the Covid-19 stress resolution framework.
Metta Capital Advisors acted as financial advisor and Trilegal acted as legal advisor to Future Enterprises on this transaction.
Never miss a story! Stay connected and informed with Mint. Download our app now!!